Want to save Taxes? Invest in the Mutual Funds.

If
you are seeking advice on long-term
investment, every second person with some knowledge of finances will be
seen promoting for the tax-
saving mutual funds. Wondering why? Why is everyone recommending ELSS
these days? Here’s the reason-

ELSS
also called as Equity Linked Savings Schemes are known to be an ideal
instrument that can save your taxes and holds the capability to give you
potential benefits from your
market investment at the same time.

Before
knowing about the detailed benefits from ELSS here are some short insights that
might be favorable for the further read-

1. ELSS allows you to invest in equity market where the lock-in
period is ideally meant for 3 years

2. It provides equity market capital gains along with the tax
saving benefits

3. Section 80C of the Income Tax Act, 1961 can
be taken into control via tax deduction of up to 1.50 lakh

By
now you must be getting curious to know more about these magical tax-saving mutual funds. Take
a look-

1.
High returns with less redemption worries- Investing in the equity market through ELSS makes
you eligible for the potential benefits from the capital market and the 3-year
lock-in period gives you the plan for long-term investment without much worries
for the shorter redemptions.

2.
Tax-Free Dividends- The interest generated through mutual funds in
tax-free, hence saving you from paying any extra money as opposed to the
traditional bank deposit schemes. So be it return, dividends or the capital
gains, stay tax-free for everything with mutual funds.

3.
Returns of 15 % *- As the investment in ELSS is directly linked to the market scenario it
can give you returns as high as 15 % which is more than any other tax-saving
avenues.

4.
Indexation benefits- When investment is made through mutual funds, the real
part of gains, i.e. capital gains are subject to indexation benefits.

5.
Mutual Funds Tax-exemption under section 80 C- All the investments you
did up to 1.50 lakh in ELSS are eligible for Tax-exemption under section 80 C.
One can get exemption up to 46350 if
he/she falls in the applicable tax slab of 30 percent.

6.
A long-term investment for better goals- It provides you with the option
to realize your long-term goals with the only condition of being reviewed at
regular intervals for the ongoing performance.

7.
Invest according to your choice- Lump sum or the SIP (systematic
investment plan), you can choose any option to invest in mutual funds. However experts, generally
advice for lump-sum investment for tax-saving purposes.

8.
Professionals at your service- While being managed by professional
fund-managers, with expertise in handling these investments, the ELSS gives you
risk-less and tension-less investment option with the team dedicated to
tracking the market diversification for your funds.

9.
Counter Market Volatility with SIP- The changing and volatile market
dimensions can be managed easily when you opt for SIP in ELSS. This the safest
way to play this mutual funds game.

10.
Invest as low as 500 - One can start investing though SIP with smaller amounts as low as
500 at regular intervals.